ArcelorMittal CEO warns of ‘small window’ to avert crisis amid job cuts

ALSO READ: Bleak start to 2025 as ArcelorMittal South Africa winds down Longs Business

AMSA plans to shut down these plants which will cut 3,500 jobs with Newcastle the hardest hit.

According to the South African Communist Party, SACP, the medium-to long-term, fallout could put an estimated 25 000 to 100 000 livelihoods at risk.

Verster said after Friday’s meeting in Vanderbijlpark that there is ‘only a tiny window of opportunity to save the situation’ amid the company’s dire financial situation.

“We do not have much time left for consultations and discussions,” Verster said. “The issue has been pushed to a decision from the company’s perspective, and we now have a tiny window to try and find a solution.”

AMSA reported its worst financial performance in recent history in 2023, citing sluggish economic growth, high energy costs, and logistical challenges – including issues with Transnet and Eskom – as major contributors to its decline.

The company forecasts a 5% revenue drop in 2024 due to reduced asset utilization and weaker net realized prices.

Verster also pointed to structural issues within the steel manufacturing sector.

“We continue to advocate for a level playing field and a conducive environment for steel manufacturing,” he said. “Tax, price preference systems, and export laws need to be addressed – these are complicated issues.”

Minister Meth expressed ‘cautious optimism’ following the initial meeting, acknowledging the challenges but stressing the government’s commitment to exploring interventions to mitigate job losses.

“I can be a doomsayer and say it is inevitable that jobs will be lost, and it’s for that reason that we try to come together,” Meth said. “I appreciate the commitment from the CEO and his team to engage and see how best we can intervene as a government. So, there is hope.”

Meth described the discussions as productive but underscored the need for continued collaboration.

“This was our first meeting, and we can’t say conclusively now that we have a solution,” she noted. “We are joining other government interventions and talks, as led by the Department of Trade and Industry.”

The looming job cuts and financial pressures at AMSA highlight the struggles facing South Africa’s steel industry, which has been impacted by global competition, rising operational costs, and regulatory challenges.

Meanwhile, the SACP said it ‘will mobilise our structures, workers and communities in Newcastle, Vereeniging, eMalahleni and beyond to take militant action against AMSA’s plans.’

The Communist Party said stopping this from happening was not just an economic imperative but a matter of national security to ensure the survival of domestic steel production and supplies to various manufacturing sectors.

Further, the SACP said the government must not abandon critical industrial policy instruments, such as the Preferential Price System and export tariffs on scrap metal, highlighting that these measures are essential to ensure that the scrap metal resource above the ground is transformed into value-added products, including reasonably priced long steel products.

The party wants decisive action to be taken against illegal scrap metals and trade, particularly the looting of public infrastructure and theft.

Note from the Editor – AMSA: Newcastle’s heartbeat fades

The struggles of ArcelorMittal South Africa (AMSA) in Newcastle and Vanderbijlpark are a microcosm of industrial decline.
Once a lifeblood for Newcastle, employing over 13,000 people, AMSA’s downfall is a bitter reminder of policy failure. Transnet’s inability to reliably transport AMSA’s products, the government’s failure to curb illegal scrap metal trading, and an unregulated flood of cheap imports have all compounded the company’s struggles.
These failures aren’t inevitable; they are preventable. They result from a lack of vision and political will to act on legislation already in place. The cascading effects on local economies, livelihoods, and community morale are immeasurable.
Moving forward: A lesson in Aaccountability
Chinua Achebe’s classic novel, Things Fall Apart, carries a poignant lesson: change is inevitable, and societies must adapt to survive. Achebe wrote this in the early 1960s, yet its relevance is striking today as we confront a different kind of collapse—one born not of cultural shifts, but of governance failures and non-implementation of existing laws.
Achebe’s message in Things Fall Apart is not just about change but about the cost of resisting it or failing to respond effectively.
South Africa does not lack the frameworks for effective governance; what it lacks is implementation, oversight, and accountability.
Laws and policies are meaningless without action.
To reverse this decline, authorities must step up enforcement, ensure oversight, and prioritize community welfare.
Without these steps, we risk continuing to write our own tale of things falling apart—one tragedy at a time.

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